Analysts Clamor Over Valuing Costco Wholesale Corporation (COST)

Some analysts have a lowest price target on Costco Wholesale Corporation (NASDAQ:COST) of $206, which would mean a -11.57% gain in value. The closing share price quoted for March 12, 2019 was $232.96. The 1.42% rally might have been tempting for an investor to buy at this point and in fact that would prove a good idea, as sell-side analysts think there is almost 15.9% more gain yet to come for shareholders. Analysts seemed to set $270 as highest price target on its way to greater gains. The stock enjoyed an overall uptrend of 14.36% from the beginning of 2019. The average 12-month price target they expect from the stock is $241.57. This mean price target represents 3.7% upside over its previous closing price. The median price target they presented was $250 for the next 12-months, which suggests a 7.31% upside from current levels.

A fresh roundup today notes that COST stock has added around 23.53% of its value in the past 12 months, suggesting more investors have expressed joy over about in that time period. If we turn to the Street in general, the positives still outweigh the negatives as we can see that Costco Wholesale Corporation (COST), have a ,neutral (2.2) analyst consensus rating. In the current time, the stock has 17 buy and 11 hold ratings. The stock registered its 52-week high of $245.16 on September 11 and its 52-week low of $180.83 on March 23. Currently, the shares are trading $19.38 above its YTD moving average of $213.58.

Moving on, Costco Wholesale Corporation (COST) last reported its February 2019 earnings. For brief highlights, it performed well in that quarter, with earnings up 42% year-over-year at $2.01. The company surprised analysts by 18 who were expecting $1.7 per share. Overall, its quarterly revenues jumped by 7% to reach $35.4 billion, while it had reported $33 billion in the same period a year ago. To see what investors should really expect from its May 2019 financial results consensus analyst estimates are calling for current quarter earnings per share of $1.82, up from $1.7 in the same quarter a year ago. However, earnings-per-share are expected to see growth of 7.5% in next year. From there, the company believes it can achieve a long-term annual earnings growth rate of 10.82 %. At the other end of the income statement, we have seen revenue of $144.84 billion over the trailing 12 months.

To help you decide whether it’s worth the wait (and the money), Costco Wholesale Corporation (NASDAQ:COST) is currently trading at 31.67X the company’s trailing-12-month earnings per share, which represents a premium compared to the sector’s 19.57X and comes in above its industry’s 25.51X. The most popular method for valuing a stock is to study the historic Price-to-Earnings (P/E) ratio using reported earnings for the past 12 months. The EPS number for this stock in the most recent four quarters of earnings stood at $7.36. P/E ratio is so popular because it’s simple, it’s effective, and, tautologically, because everyone uses it.

The 14-day Absolute ATR (Average True Range) on Tuesday, March 12 of 2019 shows that the price on average moves $3.93. The average daily volatility is 1.63% over the past week. Low volatility is good for the stock and it means we have calm and confident investors. If you check recent Costco Wholesale Corporation (COST) volume, you will see that it has changed to 2.65 million shares versus the average daily volume of 2.54 million shares.

When you look at the daily chart for COST, you will observe the stock held -3.52% losses in the 6-month period and maintains 28.83% distance from its most recent low. The past 5-day performance for the share stays positive at 5.98% but up 7.03% from its three-week moving average. Comparing to 50-day SMA, Costco Wholesale Corporation shares price is now up 9.62%. It also closed 6.41% higher from its 200-day SMA. This is often seen as the last line of defense for long term trends to find support at, else be considered broken and/or in a bear market. The daily chart of the stock more clearly reveals the slide in prices as it closed Tuesday with a 1-month performance at 12.13%.